For Immediate Release: July 8, 2008
Contact: Brittany Eck (202) 482-3809
COMMERCE FINDS UNFAIR DUMPING AND SUBSIDIZATION OF OFF-THE-ROAD TIRES FROM CHINA
WASHINGTON – The U.S. Department of Commerce today announced its final affirmative determinations in the antidumping (AD) and countervailing duty (CVD) investigations of imports of off-the-road (OTR) tires from China. OTR tires are designed for off-the-road and off-highway use and can be of tube-type or tubeless, radial or non-radial forms.
“After a thorough investigation, the Department of Commerce has found that Chinese exporters of off-the-road tires have received government subsidies and sold at below the cost of production in the United States,” said Assistant Secretary for Import Administration David Spooner. “The Bush Administration is committed to enforcing U.S. trade laws. In this case, the facts plainly indicate that subsidization and dumping have taken place.”
Commerce determined that exporters from China have sold OTR tires in the United States at
zero to 210.48 percent less than normal value and received countervailable subsidies of 2.45 to 14.00 percent.
In the AD investigation, mandatory respondents Guizhou Tyre Co., Ltd./Guizhou Advance Rubber, Hebei Starbright Tire Co., Ltd., Tianjin United Tire & Rubber International Co., Ltd., and Xuzhou Xugong Tyre Co. Ltd., received final dumping rates of 4.08, 19.15, 8.09, and zero percent, respectively. Twenty-five additional exporters qualified for a separate dumping rate of 9.48 percent. The China-wide rate of 210.48 percent will be applied to all other Chinese exporters, for which Commerce also determined that critical circumstances exist.
In the CVD investigation, mandatory respondents Hebei Starbright Tire Co., Ltd, Guizhou Tyre Co., Ltd., and Tianjin United Tire & Rubber International Co., Ltd., received net subsidy rates of 14.00, 2.45, and 6.85 percent, respectively. A final net subsidy rate of 5.62 percent will apply to all other Chinese exporters.
As a result of the final AD determination, Commerce will instruct U.S. Customs and Border Protection to continue to suspend liquidation of entries of OTR tires and collect a cash deposit or bond based on the final rates, except for Xuzhou Xugong Tyre Co. Ltd., which received a de minimis rate. Suspension of liquidation will only resume for purposes of countervailing duties if the U.S. International Trade Commission (ITC) issues an affirmative finding of injury to domestic manufacturers.
The ITC is scheduled to issue its final injury determination on or about Aug. 21, 2008. If the ITC determines that imports from China are injuring, or threaten injury to, the domestic industry, Commerce will issue AD and CVD orders. If the ITC makes a negative injury determination, these investigations will be terminated.
The petitioners for these investigations are Titan Tire Corporation in Des Moines, Iowa, and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Union in Pittsburgh, Pa.
Dumping is when a foreign company sells a product in the United States at less than normal value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture or exportation of goods.
For more information about Import Administration, or for the fact sheet on today’s decisions, please visit www.trade.gov/ia.
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